S&P raises PHL credit rating a notch above investment grade
A year after it raised the Philippine sovereign debt rating to investment grade, Standard & Poor's Ratings Services again upgraded the country's foreign currency denominated and peso debts a notch above the coveted credit rating.
This time, the debt watcher gave the Philippines a long-term sovereign credit rating of "BBB" from "BBB-", and upgraded its short-term rating to "A-2" from "A-3".
“The outlook is stable,” the debt-watcher noted, signifying a change in the ratings will not likely happen in the next 12 months.
"We raised the ratings because we now believe the ongoing reforms to address shortcomings in structural, administrative, institutional, and governance areas will endure beyond the current administration," Standard & Poor's credit analyst Agost Benard noted in an e-mailed statement to reporters.
The debt watcher also noted the upgrade "reflects the country's strong external liquidity and international investment position, combined with an effective monetary policy framework relative to the country's income level," while maintaining low inflation and interest rates.
The upgrade from S&P came a month after Fitch Ratings affirmed the investment grade on the country's foreign currency denominated and peso debts.
S&P gave the Philippines an investment grade rating on May 2, 2013. It was the second upgrade from practically junk status since Fitch Ratings gave the Southeast Asian country its first ever investment grade status in March 2013.
In a separate statement, Finance Secretary Cesar Purisima noted the S&P upgrade was a recognition of the "remarkable economic comeback" the Philippines has so far achieved since President Benigno Aquino III took over the helm of government in 2010.
"This is further proof of President Aquino's belief that good governance is good economics," he said.
"We will continue to institutionalize good governance so our country's economic growth is both sustainable and inclusive. This has been the 19th positive credit rating action since President Aquino took office and the fourth upgrade from S&P," Purisima added.
In raising the ratings, S&P said: "We expect ongoing reforms on a broad range of structural, administrative, institutional, and governance issues to endure beyond the term of the current administration."
Bangko Sentral Governor Amando M. Tetangco, Jr. said this is a major feat, as S&P did a straight upgrade without first assigning "... a positive outlook before upgrading the rating.
"This action is further affirmation of the country's strong macroeconornic fundamentals," he said, noting the Philippines has proven it can sustain growth since S&P raised the Philippine credit rating to investment grade last year, the central bank chief said.
The central bank will continue to support growth amid a low-inflation environment, Tetangco said.
"We stand ready to adjust our monetary policy stance and adopt macroprudential measures, as appropriate, to guard against risks that would unsettle inflation expectations and threaten the soundness of our financial system," he said.
"We will also continue to craft external sector policies that will help keep our external liquidity position strong," Tetangco added. – VS, GMA News
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Benham Rise is a shallow bathymetric feature, east of Luzon, that towers above the adjacent deep ocean floor. The shallowest part, which is Benham Bank, is less than 50 meters deep. NAMRIA image
Scientists explore new Philippine territory bigger than Luzon
Philippine scientists have started to conduct surveys on the potentially oil-rich Benham Rise, a largely unexplored territory larger than Luzon recently approved by the United Nations as part of the Philippines' continental shelf.
The team, led by University of the Philippines (UP) oceanographer Hildie Nacorda of the UP Diliman Marine Science Institute (MSI), left May 3 on board a Philippine research vessel for the first-ever benthic survey of the 13-million hectare area off the eastern coast of Aurora province. The team aims to map the bottom of the ecological region of the sea.
Images from the Benham Rise Program, a collaborative research cruise between UP MSI, UPLB and BFAR.
"At anchor at Benham Bank [with] 50-m and 2-knot currents. Trying drop cam[era] to take a peek at bottom. [We're] all okay. A few [are] seasick. Good weather!" the team said on Twitter on Tuesday.
On Tuesday afternoon, two of the researchers have touched the lowest part of Benham, reporting "120 percent coral cover." The members of the Benham Rise Program from UP also said they have captured "fascinating" videos of the benthic area.
Nacorda's group is expected to conduct surveys for two weeks which can pave the way for further research and exploration in the region, a UP statement said.
UP marine law expert Jay Batongbacal said that initial samplings from the undersea plateau point to huge deposits of natural gas and a rich source of manganese nodules. Batongbacal was part of the team that defended the Philippines' claim over Benham Rise before the UN Convention on the Law of the Sea panel, which gave its approval in April 2012.
MSI along with foreign research partners and a representative from the Philippine Navy set out for the first oceanographic survey of Benham Rise as part of the Philippines in 2012 following the UN approval. The Philippines was the sole claimant of Benham Rise.
The first group, aboard a vessel belonging to Scripps Research Institute, investigated the effects of Pacific Ocean currents on the productivity of the seas in the eastern Luzon area.
Lead investigator Cesar Villanoy from UP said the undersea area is the "least studied of Philippine waters."
The Department of Environment and Natural Resources had said that Benham Rise is a potentially oil-rich region that may provide energy for the country and for export.
"We own Benham Rise now. This is for future Filipnos," Environment Secretary Ramon Paje had said.
Named after American geologist Andrew Benham, the plateau was first mapped in 1933 when it was yet to be acknowledged part of the Philippine shelf. - philSTAR
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